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£50bn cash injection for UK economy

Updated on 06 August 2009

By John Sparks

The Bank of England decides to pump another £50bn into the economy in a move which surprised even the City.

Car factory (credit: Reuters)

The move came because the recession appears to be deeper than previously thought.

It means a total of £175bn will have been spent on so-called quantitative easing to help restore the economy to health.

Another measure taken, the car scrappage scheme, seems to be working - with a small rise in vehicle sales in July.

But the car industry expects the money for the scheme to run out in the next few months.

 

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